CLN Energy Limited, a key player in India's burgeoning EV sector, is launching its ₹72.30 crore IPO through a fresh issue of 28.92 lakh shares. The subscription window runs from January 23-27, 2025, paving the way for the company's debut on the BSE SME platform on January 30, 2025.
For investors eyeing opportunities in the growing electric vehicle market, CLN Energy's shares come with a face value of ₹10 and are priced between ₹235-250, with a lot size of 600 shares. Retail investors can join with a minimum investment of ₹150,000 per lot, while HNIs need to commit at least ₹300,000 (2 lots). With India's EV sector gaining momentum and the government pushing for electric mobility, early investors might want to evaluate this opportunity in the expanding EV component manufacturing space.
CLN Energy Limited IPO is a fundraise worth ₹72.30 crores comprising purely of a fresh issue with 156,000 shares reserved for the market maker Aryaman Capital Markets Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 23, 2025, to January 27, 2025, providing an opportunity for investors looking to gain a stake in the EV components space.
| CLN Energy IPO date | January 23, 2025 - January 27, 2025 |
| Price band / Fixed price | ₹235 to ₹250 per share |
| Face value | ₹10 per share |
| Lot size | 600 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 28,92,000 shares amounting to ₹72.30 crores |
| Total issue size | 28,92,000shares amounting to ₹72.30 crores |
| Listing at | BSE SME |
| Market maker portion | 156,000 - Aryaman Capital Markets Ltd |
| Shareholding post-issue | 1,05,53,250 shares |
| Shareholding pre-issue | 76,61,250 shares |
The CLN Energy Limited IPO opens for subscription on January 23, 2025, and closes on January 27, 2025, with allotment scheduled for January 28, 2025.
| IPO open date | January 23, 2025 (Thursday) |
| IPO close date | January 27, 2025 (Monday) |
| Basis of allotment | January 28, 2025 (Tuesday) |
| Initiation of refunds | January 29, 2025 (Wednesday) |
| Credit of shares to Demat account | January 29, 2025 (Wednesday) |
| Listing date on BSE / NSE SME | January 30, 2025 (Thursday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 27, 2025 (Monday) |
CLN Energy Limited, established in 2019, has emerged as a specialized manufacturer of lithium-ion batteries and EV components, operating under its proprietary "CLN Energy" brand. The company's comprehensive B2B portfolio includes customized battery solutions, motors, and various powertrain components such as controllers, throttles, DC-DC converters, displays, and differentials, serving both the electric vehicle sector and stationary applications like solar, energy storage systems, and telecommunications.
Operating from two ISO-certified manufacturing facilities in Noida and Pune, the company maintains high quality standards with QMS 9001:2015, EMS 14001:2015, and OHSAS 45001:2018 certifications. As of September 2024, CLN Energy employs a substantial workforce of 155 permanent staff and 286 contractual employees, positioning itself as a significant player in India's growing electric vehicle and energy storage solutions sector.
The net proceeds from the issue will be used for purchasing machinery and equipment, meeting working capital requirements, and covering general corporate purposes.
The CLN Energy Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 115%, Return on Capital Employed (ROCE) at 91.55%, the Return on Net-Worth (RoNW) at 73.19%, and the PAT Margin was 7.38%. The company’s market capitalisation is ₹263.83 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 75.84 | 132.86 | 128.88 | 121.70 |
| Assets | 119.73 | 113.27 | 109.62 | 62.05 |
| Net Worth | 18.01 | 13.37 | 3.58 | 2.86 |
| Profit After Tax | 4.64 | 9.79 | 0.73 | 3.64 |
| Reserves & Surplus | 10.35 | 9.97 | 2.45 | 1.72 |
| Total Borrowing | 6.78 | - | - | - |
Amount in ₹ crores
The pre-IPO EPS is at ₹12.78 while the post-IPO EPS will be ₹9.28. Similarly, the pre-IPO Price to Earnings ratio is 19.57 and will become 26.95 post-IPO.
CLN Energy Limited benefits from state-of-the-art manufacturing facilities in Pune and Noida, allowing for efficient production of critical components such as lithium-ion batteries, motors, controllers, and battery management systems. The company operates in the rapidly growing electric vehicle (EV) and renewable energy sectors, which are supported by global decarbonization goals and favorable government policies like FAME II and PLI. CLN Energy also boasts a well-educated and experienced team, a dedicated in-house research and development division, and strong, long-term customer relationships. These factors enable the company to offer customized, high-quality solutions, positioning it well to meet the increasing demand in the EV and renewable energy markets.
Additionally, the company’s consistent track record of financial performance reflects its solid foundation in the industry. With two major facilities in strategic locations and the ability to customize its products, CLN Energy is well-positioned to scale its operations and adapt to the evolving needs of the EV market. The company’s technical expertise and ability to leverage government incentives provide a strong competitive advantage in the rapidly expanding EV and renewable energy sectors.
CLN Energy faces significant challenges, including heavy dependence on the EV and renewable energy markets for growth. A slowdown in EV adoption or changes in government incentives could adversely impact the company's revenue and expansion prospects. The company also faces stiff competition from established players both domestically and internationally, which may limit its market share and growth potential. Moreover, CLN Energy’s limited global presence and reliance on a few key customers for revenue expose it to concentration risks, making it vulnerable to market shifts or loss of major clients.
Another concern is the company’s dependence on raw material imports, such as lithium, cobalt, and nickel, which are subject to price fluctuations and supply chain disruptions. This exposes CLN Energy to potential cost volatility. The company also faces organizational challenges due to a mix of permanent and contract staff, which could impact consistency and employee retention. Furthermore, with its listing on the BSE SME platform, CLN Energy may experience liquidity challenges and limited trading activity, hindering investor interest and market visibility. Finally, ongoing litigation involving its promoters and directors could pose reputational and financial risks if these matters result in unfavorable outcomes.
Investing early in CLN Energy Limited offers an opportunity to be part of the company’s growth in the EV components sector. However, potential investors should thoroughly evaluate key factors such as the company’s operational history, financial stability, industry trends, and growth plans, while also aligning the investment with their personal financial goals and risk tolerance. It is advisable to review the offer document and consult with a professional if necessary to make a well-informed decision about participating in this IPO.
What is the CLN Energy Limited IPO?
The CLN Energy Limited IPO is an BSE SME offering consisting of 28.92 equity shares with a face value of ₹10 per share, aiming to raise ₹72.30 crore. The price band has been set between ₹235 to ₹250 per share, with a minimum order quantity of 600 shares. This IPO will be open for subscription from January 23, 2025, to January 27, 2025. Aryaman Financial Services Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Aryaman Capital Markets Limited is the market maker.
When will the CLN Energy IPO open?
The CLN Energy Limited IPO will open for subscription on January 23, 2025, and will close on January 27, 2025.
When is the CLN Energy IPO listing date?
The tentative listing date for the CLN Energy Limited IPO is Thursday, January 27, 2025.
For android only